US stocks close lower

US stocks close lower

New York, July 17 (IANS) U.S. stocks closed lower as investors digested the latest corporate earnings reports and Federal Reserve Chairman Jerome Powell’s remarks.

The Dow Jones Industrial Average decreased 23.53 points, or 0.09 per cent, to 27,335.63 on Tuesday. The S&P 500 went down 10.26 points, or 0.34 per cent, to 3,004.04. The Nasdaq Composite Index declined 35.39 points, or 0.43 per cent, to 8,222.80, Xinhua reported.

Goldman Sachs beat Wall Street’s expectations for second-quarter results Tuesday with outperformance in its investment banking and trading division.

It reported earnings per share of USD 5.81, and revenue of USD 9.46 billion.

JP Morgan Chase reported second-quarter earnings per share of USD 2.82, and revenue of USD 29.6 billion, both beating Wall Street’s estimates.

Despite the banks’ solid profits, investors were cautious on the upcoming earnings reports.

Analysts expect S&P 500 earnings to have fallen by 3 percent in the second quarter, according to CNBC, citing FactSet data.

The central bank expected growth in the United States to remain solid, labor markets to stay strong, and inflation to move back up and run near 2 per cent, media reports quoted Powell as saying at an economic conference in Paris on Tuesday.

But he noted the “uncertainties about this outlook have increased, however, particularly regarding trade developments and global growth.”

Powell repeated his pledge Tuesday to act as appropriate to keep the economic expansion going as his fellow central bankers move toward an expected interest rate cut later this month, said the reports.

Market expectation for an interest rate cut in July stood at 100 percent on Tuesday, according to the CME Group’s FedWatch tool.

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